WASHINGTON-Organized medicine is reacting coolly to President Clinton’s proposal to lower the age of Medicare beneficiaries.
In what some characterize as creeping universal coverage, Clinton would give a medical-insurance blanket to laid-off workers as young as 55, and he would let retirees in at 62. The AMA would have the age of Medicare eligibility match Social Security’s, which will rise from 65 to 67 by 2027.
“We must ensure that the needs of current beneficiaries will be met before the Medicare program is opened up to new categories of participants,” said Dr. Thomas Reardon, AMA’s board chairman.The GOP took a similar tack. “It’s going to be popular,” conceded Sen. Phil Gramm (R-Tex.). But the “cold reality” is that people need to work longer to pay into the system. The White House estimates that only 300,000 uninsured people would be able to afford the early coverage.
Designed as self-financing, the proposal would let three million Americans 62 to 65 who are uninsured buy coverage for $300 a month. After 65, they would pay the Part B premium, now $43.80 plus $10 to $20 a month.
Laid-off workers 55 to 62 would pay $400 per month. And retirees over 55 whose employers renege on promises to provide coverage would be entitled to buy into their former employers’ plans for about 120% of cost.
The administration says it’ll find the $2 billion to $3 billion in start-up costs by cracking down on fraud and abuse.
But critics warn that the program will strain the budget by encouraging people to retire earlier and employers to drop coverage. They say adverse selection could inflate costs and lower payments. -Christina Kent
WASHINGTON-Organized medicine is reacting coolly to President Clinton’s proposal to lower the age of Medicare beneficiaries.
